Pakistan's Per Capita Milk Consumption Reaches 231 Liters

Per capita milk consumption in Pakistan reached 231 liters (231 Kg) in 2019, according to a new research report entitled ‘Asia – Whole Fresh Milk – Market Analysis, Forecast, Size, Trends and Insights’. It has almost doubled from 119 liters per person in 2011. Milk production in Pakistan is the second highest in Asia and the third highest in the world.  Per capita milk consumption of 231 kg in Pakistan is the third highest in Asia, behind Uzbekistan's 339 Kg and Turkey's 281 Kg, according to the IndexBox report

Top Milk Producing Countries. Source: FAO

Milk Production:

Pakistan produced 47 million tons of milk in 2019, the third largest in the world after top-ranked India's 198 million tons and the United States' 100 million tons. Pakistan’s milk production is projected to increase by an average of 3% a year due to an increase in the herd population. According to FAO projections, Asian production is expected to increase by 2% in 2020 due to expected growth in India, Pakistan, and China, while Turkey may experience a decline.

In value terms, India ($146.8B) led the market, alone. The second position in the ranking was occupied by Pakistan ($37.3B). It was followed by China.

Milk Production Growth in Pakistan

Milk Consumption: 

Milk consumption in Pakistan in 2019 was 231 Kg per capita. It has grown an average of 3.2% a year in the last decade. From 2009 to 2019, the average annual rate of growth in terms of volume in India totaled +5.4%. The remaining consuming countries recorded the following average annual rates of consumption growth: Pakistan (+3.2% per year) and China (-1.2% per year).  

Pakistan Dairy Sector:

Vast majority of milk producers in Pakistan are small farmers who own a few cows or buffaloes and sell unprocessed milk. However, commercial scale dairy farming is starting to grow in the country.  Since the year 2000, corporate sector has seen the potential and jumped in with brand names like Dawood's Engro and Nestle's MilkPak.  This has led to the enlargement of herds with imports of high-quality milk germ plasm, the productivity per animal, milk collection, processing and marketing, the supply of dairy inputs (machinery, equipment, feeds, semen, and elite dairy animals), and farmers knowledge, and skills on modern management practices.   

The size of the opportunity for selling dairy products in Pakistan has attracted significant investments from European giants like Nestle, FrieslandCampina and Unilever. Commercial dairy farms like JK Dairy.  

Pakistan Agriculture Output: 

As of 2016, Pakistan's agriculture output is $52.5 billion, the 10th largest in the world in terms of gross value of agricultural production at current prices, according to Food and Agriculture Organization (FAO). China leads with $1.2 trillion in agricultural output, followed by India's $365 billion, United States with $329 billion, Brazil's $167 billion, Indonesia $135 billion, Japan's $91 billion, Russia's $69 billion, Turkey's $69 billion, France's $65 billion and Pakistan's $52 billion. 

Top 10 Countries by Agriculture Output. Source: FAO


Summary:

Pakistan is among the world's largest dairy producing and consuming nations. Pakistan produced 47 million tons of milk in 2019, the third largest in the world after top-ranked India's 198 million tons and the United States' 100 million tons. Per capita milk consumption in Pakistan reached 231 Kg in 2019. Pakistan’s milk production is projected to increase by an average of 3% a year due to an increase in the herd population. Vast majority of milk producers in Pakistan are small farmers who own a few cows or buffaloes and sell unprocessed milk. However, commercial scale dairy farming is starting to grow in the country. Overall, Pakistan's agriculture output is the 10th largest in the world.

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Meat and Dairy Revolution in Pakistan

Pakistanis Are Among the Most Carnivorous

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Pakistan Leads South Asia in Agriculture Value Addition

Median Incomes in India and Pakistan

Comments

Qaiser said…
Milk is very high in protein and vitamins. There is no excuse that we have such high levels of malnutrition in Pakistan when we have such high levels of milk production.
Anonymous said…
Start export dairy products and earn foreign exchange.
Riaz Haq said…
#Pakistan's #agriculture output is $52.5 billion, world's 10th largest . 1. #China: $1.2 trillion,2. #India's $365 billion, 3. #US's $329B, 4. Brazil's $167B, 5. #Indonesia $135B, 6. #Japan's $91B, 7. #Russia's $69B, 8. Turkey's $69B, 9. France's $65B.
https://knoema.com/atlas/topics/Agriculture/Value-of-Agricultural-Production-Gross-Production-Value-Current-Million-USdollar/Gross-value-of-agricultural-production

https://twitter.com/haqsmusings/status/1319702261635764224?s=20

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As of 2016, Pakistan's agriculture output is $52.5 billion the 10th largest in the world in terms of gross value of agricultural production at current prices, according to Food and Agriculture Organization (FAO).

https://knoema.com/atlas/topics/Agriculture/Value-of-Agricultural-Production-Gross-Production-Value-Current-Million-USdollar/Gross-value-of-agricultural-production

China leads with $1.2 trillion in agricultural output, followed by India's $365 billion, United States with $329 billion, Brazil's $167 billion, Indonesia $135 billion, Japan's $91 billion, Russia's $69 billion, Turkey's $69 billion, France's $65 billion and Pakistan's $52 billion.
Riaz Haq said…
Pakistan produced in 2018:

67.1 million tons of sugarcane/ 5 million tons of sugar (5th largest producer in the world, behind Brazil, India, China and Thailand);
25.0 million tons of wheat (7th largest producer in the world);
10.8 million tons of rice (10th largest producer in the world);
6.3 million tons of maize (20th largest producer in the world);
4.8 million tons of cotton (5th largest producer in the world);
4.6 million tonnes of potato (18th largest producer in the world);
2.3 million tonnes of mango (including mangosteen and guava) (5th largest producer in the world, only behind India, China, Thailand and Indonesia);
2.1 million tons of onion (6th largest producer in the world);
1.6 million tons of orange (12th largest producer in the world);
593 thousand tons of tangerine;
550 thousand tons of tomatoes;
545 thousand tons of apple;
540 thousand tons of watermelon;
501 thousand tons of carrot;
471 thousand tons of date (6th largest producer in the world);
Riaz Haq said…
#Pakistan develops two new varieties of #banana. These high-yielding varieties will have more shelf life, a basic requirement for #export. Banana is cultivated over an area of 80,000 acres in Pakistan but per acre yields are low- Profit by Pakistan Today https://profit.pakistantoday.com.pk/2020/11/19/pakistan-develops-two-new-varieties-of-banana/#.X8vShA7wZdA.twitter

Pakistan has achieved a breakthrough in banana production, as the country’s apex agricultural research institution has developed two varieties of the fruit for cultivation in Sindh.

“The new varieties — NIGAB-1 and NIGAB-2 — will boost banana production in the country, which will further help in meeting domestic requirements as well as export targets,” said Pakistan Agricultural Research Council (PARC) Chairman Dr Muhammad Azeem Khan. He lauded the scientists involved in the development of NIGAB varieties.

According to details, the new varieties of banana were developed at the National Institute for Genomic and Advanced Biotechnology (NIGAB) of the National Agricultural Research Centre, where 300,000 disease-free plants have so far been produced through tissue culture.

These high-yielding varieties will have more shelf life, a basic requirement for export.

The two varieties have been approved by the Sindh Seed Council for commercial cultivation in the province, which is the largest grower of the fruit in the country.

Statistics showed that banana is cultivated over an area of 80,000 acres in Pakistan. However, according to the Food and Agriculture Organization (FAO) of the United Nations, per-acre yield in Pakistan is lower when compared to India and China, which produce more than ten tonnes per acre.

Bananas are the world’s most exported fresh fruit with the volume of $10 billion per year. They are an essential source of income for thousands of rural households in developing countries. However, agrochemical-intensive production along with declining producer prices has given rise to many environmental and social challenges.

As per the FAO, global production of bananas and tropical fruits is projected to grow at 1.8pc per year between 2019 and 2028, after registering 2.3pc per year growth in the previous decade. Under the baseline scenario, production is expected to slightly exceed 255 million tonnes by 2028.
Riaz Haq said…
Speaking at a Karachi Chamber of Commerce and Industry webinar in December, Adviser to the Prime Minister on Institutional Reforms Dr Ishrat Husain stressed the importance of looking beyond the textile sector and diversifying Pakistan’s exports. Otherwise, he warned, we will remain “stuck” at 25 to 30 billion dollars in exports per year.

https://www.dawn.com/news/1611075

“If we can capture just one percent of the Chinese market by providing components, raw materials [and] intermediate goods to the Chinese supply chain,” he had said, “we can get 23 billion dollars in exports to China, which is very favourably inclined towards Pakistan...”

From the looks of it, others were on the same page as Husain. Last month, it was reported by China Economic Net (CEN) that China will import dairy products from Pakistan. The Commercial Counsellor at the Pakistan Embassy in Beijing, Badar uz Zaman, told CEN that Pakistan got this opportunity due to its high quality dairy products, available at a low price.

Pakistan is the fourth largest milk producer globally, Zaman pointed out.

Indeed, the country’s dairy industry has great potential and can prove to be ‘white gold’ for Pakistan. Unfortunately, the sector is currently struggling due to various reasons but, if its export potential is realised, it can transform not only the sector itself but Pakistan’s economy as well.

According to the Food and Agriculture Organisation at the United Nations, in the last three decades, global milk production has increased by more than 59 percent, from 530 million tonnes in 1998 to 843 million tonnes in 2018.

This rise in global milk consumption is an opportunity for countries such as Pakistan to earn foreign exchange by exporting milk and dairy products to countries which have insufficient milk production. According to a Pakistan Dairy Association estimate, with support from the government, Pakistan can earn up to 30 billion dollars from exports of only dairy products and milk.
Riaz Haq said…
Speaking at a Karachi Chamber of Commerce and Industry webinar in December, Adviser to the Prime Minister on Institutional Reforms Dr Ishrat Husain stressed the importance of looking beyond the textile sector and diversifying Pakistan’s exports. Otherwise, he warned, we will remain “stuck” at 25 to 30 billion dollars in exports per year.

https://www.dawn.com/news/1611075

“If we can capture just one percent of the Chinese market by providing components, raw materials [and] intermediate goods to the Chinese supply chain,” he had said, “we can get 23 billion dollars in exports to China, which is very favourably inclined towards Pakistan...”

From the looks of it, others were on the same page as Husain. Last month, it was reported by China Economic Net (CEN) that China will import dairy products from Pakistan. The Commercial Counsellor at the Pakistan Embassy in Beijing, Badar uz Zaman, told CEN that Pakistan got this opportunity due to its high quality dairy products, available at a low price.

Pakistan is the fourth largest milk producer globally, Zaman pointed out.

Indeed, the country’s dairy industry has great potential and can prove to be ‘white gold’ for Pakistan. Unfortunately, the sector is currently struggling due to various reasons but, if its export potential is realised, it can transform not only the sector itself but Pakistan’s economy as well.

According to the Food and Agriculture Organisation at the United Nations, in the last three decades, global milk production has increased by more than 59 percent, from 530 million tonnes in 1998 to 843 million tonnes in 2018.

This rise in global milk consumption is an opportunity for countries such as Pakistan to earn foreign exchange by exporting milk and dairy products to countries which have insufficient milk production. According to a Pakistan Dairy Association estimate, with support from the government, Pakistan can earn up to 30 billion dollars from exports of only dairy products and milk.

Unfortunately, this potential is being wasted. As per statistics provided by the Pakistan Dairy Association, livestock and dairy currently make up approximately only 3.1 percent of Pakistan’s total exports; which would mean about a mere 0.68 billion dollars in FY2020.
Riaz Haq said…
Our total consumption of wheat and atta is about 125kg per capita per year. Our per person per day calorie intake has risen from about 2,078 in 1949-50 to 2,400 in 2001-02 and 2,580 in 2020-21

By Riaz Riazuddin former deputy governor of the State Bank of Pakistan.


https://www.dawn.com/news/1659441/consumption-habits-inflation

As households move to upper-income brackets, the share of spending on food consumption falls. This is known as Engel’s law. Empirical proof of this relationship is visible in the falling share of food from about 48pc in 2001-02 for the average household. This is an obvious indication that the real incomes of households have risen steadily since then, and inflation has not eaten up the entire rise in nominal incomes. Inflation seldom outpaces the rise in nominal incomes.

Coming back to eating habits, our main food spending is on milk. Of the total spending on food, about 25pc was spent on milk (fresh, packed and dry) in 2018-19, up from nearly 17pc in 2001-01. This is a good sign as milk is the most nourishing of all food items. This behaviour (largest spending on milk) holds worldwide. The direct consumption of milk by our households was about seven kilograms per month, or 84kg per year. Total milk consumption per capita is much higher because we also eat ice cream, halwa, jalebi, gulab jamun and whatnot bought from the market. The milk used in them is consumed indirectly. Our total per person per year consumption of milk was 168kg in 2018-19. This has risen from about 150kg in 2000-01. It was 107kg in 1949-50 showing considerable improvement since then.

Since milk is the single largest contributor in expenditure, its contribution to inflation should be very high. Thanks to milk price behaviour, it is seldom in the news as opposed to sugar and wheat, whose price trend, besides hurting the poor is also exploited for gaining political mileage. According to PBS, milk prices have risen from Rs82.50 per litre in October 2018 to Rs104.32 in October 2021. This is a three-year rise of 26.4pc, or per annum rise of 8.1pc. Another blessing related to milk is that the year-to-year variation in its prices is much lower than that of other food items. The three-year rise in CPI is about 30pc, or an average of 9.7pc per year till last month. Clearly, milk prices have contributed to containing inflation to a single digit during this period.

Next to milk is wheat and atta which constitute about 11.2pc of the monthly food expenditure — less than half of milk. Wheat and atta are our staple food and their direct consumption by the average household is 7kg per capita (84kg per capita per year). As we also eat naan from the tandoors, bread from bakeries etc, our indirect consumption of wheat and atta is 41kg per capita. Our total consumption of wheat and atta is about 125kg per capita per year. Our per person per day calorie intake has risen from about 2,078 in 1949-50 to 2,400 in 2001-02 and 2,580 in 2020-21. The per capita per day protein intake in grams increased from 63 to 67 to about 75 during these years. Does this indicate better health? To answer this, let us look at how we devour ghee and sugar. Also remember that each person requires a minimum of 2,100 calories and 60g of protein per day.

Undoubtedly, ghee, cooking oil and sugar have a special place in our culture. We are familiar with Urdu idioms mentioning ghee and shakkar. Two relate to our eating habits. We greet good news by saying ‘Aap kay munh may ghee shakkar’, which literally means that may your mouth be filled with ghee and sugar. We envy the fortune of others by saying ‘Panchon oonglian ghee mei’ (all five fingers immersed in ghee, or having the best of both worlds). These sayings reflect not only our eating trends, but also the inflation burden of the rising prices of these three items — ghee, cooking oil and sugar. Recall any wedding dinner. Ghee is floating in our plates.

Riaz Haq said…
Pakistan Economic Survey: Health & Nutrition 2021-22

https://www.finance.gov.pk/survey/chapter_22/PES11-HEALTH.pdf

Infant Mortality Rate (IMR) in Pakistan has declined to 54.2 deaths per 1,000 live births
in 2020 from 55.7 in 2019, while Neonatal Mortality Rate declined to 40.4 deaths per
1,000 live births in 2020 from 41.2 in 2019. Percentage of birth attended by skilled
health personnel increased to 69.3 percent in 2020 from 68 percent in 2019 (DHS & UNICEF). Maternal Mortality Ratio fell to 186 maternal deaths per 100,000 births in
2020, from 189 in 2019 (Table 11.1).
With a population growing at 2 percent per annum, Pakistan’s contraceptive prevalence
rate in 2020 decreased to 33 percent from 34 percent in 2019 (Trading Economics).
Pakistan’s tuberculosis incidence is 259 per 100,000 population and HIV prevalence rate
is 0.12 per 1,000 population in 2020.


Table 11.1: Health Indicators of Pakistan
2019 2020
Maternal Mortality Ratio (Per 100,000 Births)* 189 186
Neonatal Mortality Rate (Per 1,000 Live Births) 41.2 40.4
Mortality Rate, Infant (Per 1,000 Live Births) 55.7 54.2
Under-5 Mortality Rate (Per 1,000) 67.3 65.2
Incidence of Tuberculosis (Per 100,000 People) 263 259
Incidence of HIV (Per 1,000 Uninfected Population) 0.12 0.12
Life Expectancy at Birth, (Years) 67.3 67.4
Births Attended By Skilled Health Staff (% of Total)** 68.0 (2015) 69.3 (2018)
Contraceptive Prevalence, Any Methods (% of Women Ages 15-49) 34.0 33
Source: WDI, UNICEF, Trading Economics & Our World in data
-----------

Food and nutrition

Calories/day 2019-20 2457 2020-21 2786 2021-22 2735

-------

Table 11.9: Availability of Major Food Items per annum (Kg per capita)
Food Items 2019-20 2020-21 2021-22 (P)**
Cereals 139.9 170.8 164.7
Pulses 7.8 7.6 7.3
Sugar 23.3 28.5 28.3
Milk (Liter) 168.7 171.8 168.8
Meat (Beef, Mutton, Chicken) 22.0 22.9 22.5
Fish 2.9 2.9 2.9
Eggs (Dozen) 7.9 8.2 8.1
Edible Oil/ Ghee 14.8 15.1 14.5
Fruits & Vegetables 53.6 52.4 68.3
Calories/day 2457 2786 2735
Source: M/o PD&SI (Nutrition Section)
Riaz Haq said…
"Milk has the potential to be a $30 billion industry if it is organised"

https://aurora.dawn.com/news/1144640

Published in Nov-Dec 2022 Zeenat Chaudhary
Interview with Awais Bin Nasim, Managing Director, Tetra Pak Pakistan

ZEENAT CHAUDHARY: When was Tetra Pak established in Pakistan?
AWAIS BIN NASIM: Tetra Pak, headquartered in Sweden, is one of three companies owned by the Tetra Laval Group. About 40 years ago, Syed Babar Ali brought it to Pakistan as a joint venture with Packages Limited. Today, our customers include most of the major local dairy and juice producers like FrieslandCampina, Haleeb Foods, Nestlé, Shakarganj and Shezan International.

ZC: What material is used to make Tetra Pak’s packaging?
ABN: The main material (70% of it) used in Tetra Pak packaging is paperboard (which is made from wood pulp and provides stability and smoothness to the printing surface), aluminium foil (protects against oxygen and light to maintain the nutritional value and flavours of the contents in ambient temperatures) and polyethene (protects against moisture and enables the paperboard to stick to the aluminium foil). All of the raw material is imported from suppliers in Sweden and Brazil that are Forest Stewardship Council certified (a non-profit that promotes responsible management of the world’s forests).

ZC: Are Tetra Pak’s carton components recyclable?
ABN: We are able to recycle 100% of our carton components, including aluminium and plastic. Seventy percent of the packaging is made from long, strong recyclable fibres. In Pakistan, we work with Green Earth Recycling to recycle 42% of our annual production (27,000 tons of cartons) into furniture, waste bins, playground swings and other items. We are even turning the cartons into corrugated roofing for use in parking lots, animal sheds and stadiums, as they also lower the temperature by two to three degrees. Globally, we operate school feeding programmes and try to provide underprivileged children with free milk every day. This activity does not exist in Pakistan, but we are working with the government to find a mechanism to do so.

ZC: What makes Tetra Pak’s packaging, for milk in particular, stand out?
ABN: Tetra Pak packaging consists of six layers. The idea is to be able to package milk so that it can be made available for longer and to a larger number of people while remaining fresh, nutritious and free from adulteration and without using chemicals or preservatives. We provide our clients with Ultra High Temperature (UHT) treatment equipment, which they use at their plants to destroy the micro-organisms present in raw milk, while maintaining the milk’s nutritional integrity, making the end product suitable for distribution and consumption.

ZC: Are milk and juices packaged at Tetra Pak plants?
ABN: All products are packed at our customers’ plants. After manufacturing, we send them the packaging and we supply milk producers with UHT equipment.

ZC: What does UHT treatment entail?
ABN: When raw milk is produced, it needs to be preserved by killing most of the bacteria – this is done by flash boiling it at approximately 139 degrees centigrade for two to three seconds. The remaining bacteria become inactive/ dormant because the packaging prevents light and air from affecting the product, resulting in a shelf life of between six and eight months. Once a carton is opened, allowing light and air to enter, the bacteria become active, hence the need for refrigeration. UHT-treated milk requires a cold chain management process (once the milk is produced, it must immediately be stored at four degrees centigrade, otherwise the bacteria start multiplying). We are the only player in Pakistan to have a cold chain process.
Riaz Haq said…
"Milk has the potential to be a $30 billion industry if it is organised"

https://aurora.dawn.com/news/1144640


ZC: Doesn’t that result in a lot of milk being wasted nationwide?
ABN: Yes. Pakistan is among the top four largest milk producers in the world, but over 26% of this milk is wasted, due to storage issues, even before it reaches commercial entities. We also have the lowest milk yields in the world – we produce about seven to eight litres of milk per day per animal, whereas the world average is about 39 litres per day. We are far behind the optimum milk production level required.

ZC: What are the reasons for the high wastage and low yield?
ABN: There are a lot of contributing factors to wastage. For one, inefficient farming practices and poor farming infrastructure. Small-scale farmers especially are unaware that milk does not have a shelf life unless chilled immediately. Some dairy companies have set up milk collection centres where farmers can bring their milk for basic processing, chilling and transportation, but they need a method to preserve the milk during the travel time from the farm to the collection centre. Sometimes farmers add ice to the milk, causing adulteration. A major change is required in terms of infrastructure to preserve the quality of the milk supplied by farmers. There is also the need for government regulatory frameworks and policies. For example, India has a minimum pasteurisation law (milk must be heated at a certain temperature before it is sold for consumption) and this has resulted in the country’s milk producers converting to septic cardboard packaging, due to its shelf life and durability. Pakistan is probably the only country among the top 10 or 15 milk producers in the world which does not have a minimum pasteurisation law. The Punjab Government passed a minimum pasteurisation law in 2018, whereby loose milk would no longer be available by 2023, but nothing has been done so far. The low milk yield is due to an inbred gene pool of livestock, which results in lower production of milk (along with higher mortality rates and hereditary abnormalities). Moreover, the quality of the feed/ fodder is either low-quality or too costly. A lot of the time, farmers resort to letting their livestock free graze, resulting in them consuming toxins and other harmful substances.

ZC: Have the recent floods aggravated the situation?
ABN: Almost 33% of the population has been impacted and about 800,000 animals have been lost, which will have a significant impact. Loose milk prices have increased from Rs 120 and 130 per kilo to Rs 180 and 190 in Karachi. We are slightly lucky that the areas affected were not major dairy areas for encashment. It would have been more catastrophic if central or north Punjab were hit. The overall recovery will be difficult, but we can take this as an opportunity to start from scratch and improve the dairy/ livestock sector. This can be done by importing animals of certain breeds, investing in artificial insemination and teaching good farming practices.

ZC: What is the solution in terms of best farming practices?
ABN: Ten years ago, Tetra Pak conducted a CSR activity called ‘Dairy Hub’, where we introduced best farming practices to dairy farmers and trained them on the basic hygiene an animal requires, how to keep them hydrated, and how to clean their spaces. With these simple changes, we were able to improve their milk yields by 20 to 25%. However, a company can only give a certain level of support. It is a question of awareness at a national level. Similar to how awareness and information about wearing masks and getting vaccinated was disseminated during Covid-19, that is the scale of the intervention that is required. The milk industry has the potential to be a $30 billion industry if it is organised.
Riaz Haq said…
Annual milk production during 2021/2022 was estimated approximately 65.7 million tonnes, giving Pakistan a place in the list of world's top 5 milk producing countries. Dairy farming in Pakistan is fragmented and practiced on various scales both in rural and peri-urban areas mainly by private sector.

https://sdgs.un.org/sites/default/files/2023-05/B65%20-%20Tariq%20-%20Sustainable%20Dairy%20Production%20in%20Pakistan.pdf

Dairy sector in Pakistan plays a pivotal role in the national economy and its value is more than the
combined value of major cash-crops i.e. wheat and cotton. Annual milk production during 2021/2022 was
estimated approximately 65.7 million tonnes, giving Pakistan a place in the list of world’s top 5 milk
producing countries. Dairy farming in Pakistan is fragmented and practiced on various scales both in rural
and peri-urban areas mainly by private sector. However, this industry is facing challenges (nutrition,
healthcare, breeding, government support and public health) that threaten its sustainability and
livelihoods of millions of people involved in the sector

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